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‘Bitcoin [BTC] tools could make finance system safer’ – Says IMF Head, Christine Lagarde

Ketaki Dixit

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'Bitcoin [BTC] tools could make finance system safer' - Says IMF Head, Christine Lagarde
Source: Public Domain Pictures

Christine Lagarde, the Head of the International Monetary Fund [IMF] has claimed that Bitcoin and other digital currencies have the potential to make the financial system safer in the future. The price of Bitcoin returned above $8,000 following the comment. However, it remains unclear if the sudden boost is due to the statement. It could also be due to the statement of the Islamic scholar who declared Bitcoin as Halal under the Sharia law. 

Olga Feldmeier, CEO of blockchain startup, Smart Valor said: 

“I personally think that the rise was due to a large institutional investor, there are a lot of institutions, hedge funds and big investors waiting for the right to step in.”

In a blog post, she says that crypto-assets are the tools that can change the world by making financial activities faster, cheaper and safer. Giving her views about traditional banks and digital currencies working together, she says:

“decentralized applications spurred by crypto-assets will lead to a diversification of the financial landscape, a better balance between centralized and de-centralized service providers, and a financial ecosystem that is more efficient and potentially more robust in resisting threats.”

The IMF head hopes that banks and digital currencies co-exist. 

She thinks that a clear-eyed approach can help harness the financial gains and avoid the pitfalls while describing the benefits associated with crypto-assets. She also says that these crypto-assets may have an impact on how we save, invest and pay our bills.

On the other hand, she also believes that these crypto assets must gain the confidence and support of authorities and consumers before it can actually change the financial system.



She says:

“An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential” 

Daniel Mathew, a Twitter user said: 

“She will never submit to Bitcoin being a possible world reserve currency, because it would undermine her power. I am sure the positive comments about bitcoin is the reason for the sudden rise in bitcoin’s price!”





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Ketaki Dixit is a Journalism major from Jain University. She has about 1-year experience in the field and is passionate about blockchain technology and the cryptocurrency world.

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Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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